Bank of China

Hong Kong-based Bank of China Group Investment has broken a year-long absence from the Panda bond market, pricing a three year deal this week for refinancing.

Senior and covered bond plans were flowing into the deal pipeline on Monday, with issuers keen to buck the softer tone and print before the start of the summer break.

Asia’s dollar bond market is set for another relatively muted week for deal flow as pressure on China’s real estate industry and the US Federal Reserve’s surprisingly hawkish tone recently slow issuance.

Hong Kong-based Bank of China Group Investment is preparing to sell Rmb2.5bn ($391m) of Panda bonds, returning to the onshore market after more than a year.

China Aoyuan Group’s attempt to woo investors to its $200m bond with a generous yield fell flat on Tuesday. Recent concerns about the property developer’s leverage, and the subsequent fall of its dollar bonds in the aftermarket, held investors back from the new deal — and caused a further spiral in secondary. Morgan Davis reports.

Germany’s BMW sold two Panda bonds in China’s interbank market on Thursday, tapping onshore liquidity with a publicly syndicated deal for the first time. The transaction was also a rare public outing from a ‘real’ Panda issuer.

Bank of Communications Financial Leasing Co used a sustainability label for its new $500m three year bond.

Agricultural Bank of China sold a multi-currency deal through its Hong Kong branch this week, raising $1.322bn.

WH Group has turned to banks for about $1.25bn to fund a share buy-back, as the world’s largest pork company takes advantage of attractive market conditions to raise a new loan. Unlike its acquisition fundraising eight years ago, which received plenty of criticism and pushback from lenders, the market’s response this time around is different — despite some initial confusion, writes Pan Yue.

Three issuers are planning to sell renminbi-denominated Panda bonds this week, bringing up to Rmb7.5bn ($1.17bn) of supply to China’s onshore market.

Industrial Bank has sold a dual-currency deal through its Hong Kong branch, becoming the first Chinese lender to print an offshore ‘carbon neutrality bond’. It relied heavily on support from a 42-member syndicate team, as well as its relative rarity in the international debt market, to nab around $922m.

Two Chinese local government financing vehicles joined the flurry of dollar bonds in the Asia market on Thursday.